Personal Lines EVERYTHING

Any person who willfully violates a Cease and Desist Order of the Commissioner after it has become final and while such order is in effect will forfeit and pay a fine for the use of PUBLIC SCHOOLS of the violation a sum of $_____to$_____.

$1,000 to $5,000

Insurance producers who signs any blank contract or policy of insurance is guilty of a Class 3 Misdemeanor and, upon conviction, will be punished by a fine of $______ to $_____.

$1,000 to $5,000

A Broker must purchase a Surety Bond for no less than $______ per line of authority.

$15,000

At-Fault Minor Accidents are those resulting in property damage of $__or less.

$1850

Anyone who willfully misstates information in a financial statement required by law is guilty of perjury. The person or entity that made the misstatement is subject to a fine of between $_____and $_____.

$2,000 and $10,000

Supplementary payments will pay up to $_____for expenses incurred by an insured for emergency first aid to others performed at the scene of an accident that involved an insured vehicle under the policy.

$200

Supplementary payments will pay up to $____a day for loss of earnings by the insured because of attendance at hearings or trials and other reasonable expenses

$200

Personal Auto Policy (PAP) Part A Minimum Limits of Liability Required in North Carolina: The third number, $________, is for property damage (PD) representing the most the insurer will pay for property damage (PD) from a single occurrence (accident).

$25,000

Supplementary payments will pay up to $____ for bail bonds if an insured is arrested.

$250

At-Fault Major Accidents are those resulting in bodily injury or death and/or property damage of $_____ or more

$3,085

Personal Auto Policy (PAP) Part A Minimum Limits of Liability Required in North Carolina: The first number, $______, is for bodily injury (BI) representing the maximum that will be paid for any ONE person suffering bodily injury (BI) in an occurrence (accident).

$30,000

As already mentioned, North Carolina requires that a vehicle owner carry at least $________/$_________/$_______ PAP split limits of liability coverage.

$30,000/$60,000/$25,000 For example, J has a Personal Auto Policy (PAP) with limits of 30/60/25 and is involved in an at-fault accident in which he injures B and K. He causes $16,000 in bodily injury (BI) to B, $14,000 in bodily injury (BI) to K, and $18,000 property damage (PD) to B's vehicle. How much will J's PAP pay? Answer: The Personal Auto Policy (PAP) will pay $16,000 to B for his bodily injury (BI), $18,000 to B for the property damage (PD) to his vehicle and $14,000 to K for her bodily injury (BI). In another example, J has a Personal Auto Policy (PAP) with limits of 30/60/25 and is involved in an at-fault accident in which he injures C and K. He causes $26,000 in bodily injury (BI) to C, $34,000 in bodily injury (BI) to K, and $15,000 property damage (PD) to C's vehicle. How much will J's policy pay? Answer: $26,000 to C for bodily injury (BI), $15,000 to C for property damage (PD), and $30,000 to K for bodily injury (BI). This example shows how the PAP will not pay more than $30,000 for any single bodily injury (BI). Even though the policy has a $60,000 limit for bodily injury (BI), the policy will not pay more than $30,000 for K's injuries.

Personal Auto Policy (PAP) Part A Minimum Limits of Liability Required in North Carolina: The second number, $________, is for bodily injury (BI) representing the most that the PAP will pay for any COMBINED NUMBER OF PERSONS suffering bodily injuries in an occurrence (accident).

$60,000

At-Fault Intermediate Accidents are those resulting in property damage of more than $____ but less than $___

-$1,850 but less than $3,085

Any person who violates a Cease and Desist Order issued by the Commissioner is subject to a fine of $______ for each violation with a maximum of $_______.Also, the violator's license may be suspended or revoked by the Commissioner.

-$10,000 -$50,000

Personal Auto Policy (PAP) Part D Transportation Expense (Theft): The insurer will pay, without application of a deductible, up to $___per day to a maximum of $____for Transportation expenses and Loss of use expenses.

-$15 -$450

A license may be suspended for a period of ___to___ months for a first offense and ____ year for any further offenses.

-1 to 6 Months -1 Year

Each licensee must also give written notification to the NCDOI of any change to their residential address or e-mail address within______ days of the change. Failure to provide the information may result in the licensee having to pay a $____ administrative fee to the NCDOI.

-10 Days -$50.00

An insurer cannot accept an insurance application from an individual who is not currently appointed to that insurer. An insurer must report to the Commissioner the names of all appointed insurance producers and pay the prescribed appointment fee within ______ days of the first application for insurance. Appointments must be renewed annually by _______.

-15 days -April 1st

The Insuring Agreement states that The insurer agrees to pay reasonable expenses for necessary medical and funeral services incurred within ___ years of the date of an accident without regard to fault. Medical payments are paid on a per person, per occurrence basis. Typical Medical Payments coverage is $_____.

-3 years -$1,000

A licensee may request a ____ day extension of his or her normal compliance period from the NCDOI by completing the appropriate request form and paying a $___ fee. Requests must be made no sooner than _____ days before the end of their compliance period and no later than the last day of their compliance period

-30 days -$75.00

A Class 1 Misdemeanor has a penalty of $1,000 - $5,000 and/or an imprisonment for _____days but no more than ___ year.

-30 days -1 year

An insurer may terminate a deviation only if the deviation has been in effect for a period of ___ months before the effective date of the termination and the insurer notifies the Commissioner of the termination no later than ____ days before the effective date of the termination.

-6 Months -15 days

Newly Acquired Vehicle in the Personal Auto Policy (PAP) : 2. Additional Vehicle - This vehicle will have the _____ coverage of any vehicle described on the Declarations page. The new vehicle must be reported within ____ days of acquisition.

-Broadest -30 days

Embezzlement of money received is punishable as a FELONY. If the amount embezzled is $100,000 or more it is a Class __ felony. If the amount is under $100,000 it is a Class ___ felony. The

-Class C -Class H

Before UM/UIM applies, the vehicle involved must meet one of the following policy definitions of an uninsured/underinsured vehicle:

1. A vehicle not covered by an auto liability policy, bond or security deposit with the Insurance Commissioner's office; 2. A vehicle that has coverage, but does not meet the North Carolina minimum liability requirements; 3. A vehicle that has coverage, but the insuring company denies coverage or is or becomes insolvent; 4. A "hit and run" vehicle that cannot be identified or located. This situation is classified as an Uninsured Motorist. In this situation the policy only pays for bodily injury only. It does not provide payment for property losses.

Personal Auto Policy (PAP) Part A Insuring Agreement : Part A covers three (3) specific areas, what are they?

1. Bodily Injury (BI) to a third-party, 2. Property Damage (PD) to a vehicle belonging to a third party, 3. Supplementary Payments on behalf on an insured.

The Personal Auto Policy (PAP) liability section does not provide coverage for...

1. Bodily injury or property damage due to intentional acts by an insured 2. Property damage for property owned or being transported by the insured including property rented to, used by or in the care of an insured; 3. An employee of any insured person who sustains bodily injury in the course of employment 4.If a person is insured under a Nuclear Energy Liability policy 5.Ownership, maintenance or use of a motorized vehicle of fewer than four (4) wheels 6.Any vehicle used for delivery of persons (taxi) or property (livery) for a fee.

Both Collision and Other than Collision (OTC) coverage generally have a deductible. However, deductibles do NOT apply to a loss caused by what?

1. Fire or lightning; 2. Smoke due to a sudden, unusual and faulty operation of any fixed heating equipment serving the premises in which the auto is stored; 3. The stranding, sinking, burning, collision or derailment of any conveyance in or on which the auto is being transported.

What vehicles are eligible for the Personal Auto Policy (PAP)?

1. Four-wheel, private passenger auto including station wagons 2. Pickup or van provided it is less than 10,000 lbs. 3. Owned or leased private passenger-type autos are eligible if leased under a written agreement and the lease is for a continuous period of at least six (6) months.

Who is insured under Part A Liability Coverage?

1. Named insured for the ownership, maintenance or use of any auto or trailer; 2. Spouse of the named insured, living in the same household, if not specifically named on the Declarations page; 3. Any family member who resides in the named insured's household, including children and students who live away from home but are still financially dependent on the insured; 4. Any person who uses the covered auto with the named insured's permission.

An Uninsured Motor Vehicle does not include any vehicle or equipment that is...

1. Owned by the insured, 2. Owned or operated by a self-insurer under any applicable motor vehicle law except a self-insurer which is or becomes insolvent, 3. Owned by any government entity, 4. Operated on rails or crawler treads, 5. Farm tractor or equipment designed mainly for use off public roads unless being used on public roads, 6. While located for use as a residence or premises.

PERSONAL AUTO POLICY (PAP) PART B MEDICAL PAYMENTS (MEDPAY) Part B insurers Whom?

1. The insured while occupying the insured vehicle or any non-owned auto, 2. Any family member while they occupy the insured vehicle or any non-owned auto, 3. Other persons while they occupy the insured auto, 4. The insured and family members if struck as pedestrians by an auto.

Persons suspected of violations of North Carolina insurance law must be given _____ days notice prior to the date of any hearing. The notice must state the reason for the hearing and the charges under investigation by the Commissioner.

10 Days

If a licensee is convicted for any crime other than a motor vehicle infraction, the licensee must notify the Commissioner within _____ days after the conviction.

10 days

The Disclosure Authorization Form will remain valid from the date signed for ____ months for Property or Casualty Insurance applications.

12 months

The licensee may, within ___days after the end of his or her compliance period, complete the CE requirements and request a reinstatement of the license and pay a $_____reinstatement fee to have his or her license reinstated.

120 days -$75.00

When an insurer requires a written proof of loss, the proof of loss form must be furnished by the insurer to the insured within _____ days after the receipt from the insured having given notice of a pending claim.

15 days

The Commissioner may issue a temporary insurance producer license for a period of ____ days or longer for good cause without requiring examination.

180 days

Property Damage" means damage or loss to a rented vehicle in excess of two hundred fifty dollars ($250.00), including loss of use and any costs or expenses incident to the damage or loss, for which the renter is legally obligated to pay; and "rented" means rented on a daily rate basis for a period of ___ consecutive days or less.

21 consecutive days

Each rate or loss costs filing must become effective on the date specified in the filing, but not earlier than ___ days from the date the filing is received by the Commissioner

210 days

All licensees are required to complete _________ hours of NCDOI approved CE every ___ years

24 hours and 2 years

All Property, Casualty, Personal Lines or Adjuster licensees must complete a minimum ____hour "Flood" course approved by the NCDOI in EVERY OTHER compliance period.

3 hour

every resident licensee must complete a minimum ____ hour "Ethics" course approved by the NCDOI in EACH compliance period.

3 hour

Premium surcharges based on driving records are applied to policies for ___ years. A surcharge will be applied to individuals who have less than ___ years driving experience.

3 years

Within ___________ business days from the date when the written request was received from an individual to correct recorded personal information, the insurer must (a) correct, amend or delete the recorded personal information in dispute; or (b) notify the individual of the refusal to make the requested changes.

30 business days

A licensee must report to the Commissioner any administrative action taken against him or her in another state or by another government agency in North Carolina within ______ days after the final disposition of the matter. Within ________ days after the initial pretrial hearing date, a licensee must report to the Commissioner any criminal prosecution taken in any state.

30 days

Any licensee who ceases to maintain his or her residency in North Carolina must deliver his insurance license or licenses to the Commissioner by personal delivery or by mail within _____ days after terminating residency.

30 days

Newly Acquired Vehicle in the Personal Auto Policy (PAP) : 1. Replacement Vehicle - This vehicle will have the SAME coverage as the vehicle it replaces. The insurer must be notified within ______ days of acquisition. If the insured wishes to add or continue coverage for "Damage to the Insured's Auto," the coverage must be requested.

30 days

The Commission must meet at least ____times per year.

4 times

The North Carolina Commissioner of Insurance, referred to in the text as the Commissioner, is elected to a _______ year term during each general election. There is no limit on the number of terms the Commissioner may seek office.

4 years

Personal Auto Policy (PAP) Part D Transportation Expense (Theft): 1. Transportation expenses incurred by the insured in the event of a total theft of a covered auto 2. Loss of use expenses for which the insured becomes legally responsible in the event of the total theft of a non-owned auto. The insurer will pay only expenses incurred during the period beginning _________ hours after the theft and ending when the covered auto or the non-owned auto is returned to use or the insurer pays for the loss of the vehicle loss.

48 hours

Complaint Records: These records must be retained for at least ____ years after the final disposition of the complaint.

5 years

Licensees must maintain records of all CE credits earned for a period of ___ years after obtaining the credits.

5 years

The NCDOI must examine the records of each Domestic Insurer at least once every ___ years.

5 years

The Commissioner may give notice to the NCRB within ____ days of the filing that the proposed rates are not within the regulations of North Carolina

50 days

No licensed insurance producer of an insurer authorized to solicit and accept premiums for motor vehicle insurance for the company he represents may refuse on behalf of said company to accept any application from an eligible risk for such insurance and to immediately bind the coverage applied for and for a period of not less than ___ months.

6 Months

A suit may not be brought by an insured until __________ days after that person notifies the insurer of their belief that the prospective defendant is an uninsured motorist.

60 days

No insurance company or insurance producer may knowingly issue any fire insurance policy on property in North Carolina for an amount which, together with any existing insurance, exceeds the fair value of the property and not for a term exceeding ____ years.

7 Years

No policy form applying to insurance on risks or operations covered by the Rate Bureau may be delivered or issued for delivery unless it has been filed with the Commissioner by the Rate Bureau and either he has approved it, or _____ days have elapsed and it has not disapproved.

90 days

The Commissioner may issue a learner's permit authorizing the applicant to act as an adjuster for a learning period of _____days without a requirement of any other license. Not more than one learner's permit may ever be issued to one individual.

90 days

Within ___________ days of the notice date from the insurer of an adverse underwriting decision, the applicant may request the insurer furnish within _____ business days the specific reason for the adverse decision if not initially furnished in writing and specific items of personal and privileged information that support those reasons.

90 days 21 business days

Any person who obtains information about an individual from an insurer, insurance producer or ISO under false pretenses will, upon conviction, be guilty of a _______.

Class 1 Misdemeanor

If any person assumes to act either as principal or licensee without license as required by law the person is deemed guilty of a _______.

Class 1 Misdemeanor

If any person knowingly or willfully makes a false or fraudulent statement on any application for insurance, or makes any such statement for the purpose of obtaining any monetary benefit from any company engaged in the business of insurance in North Carolina, is guilty of a ______

Class 1 Misdemeanor.

A person who attempts to obtain anything of value from another by false pretenses with intent to cheat, embezzle or defraud is guilty of ________

Class H felony

IS Wear and tear, mechanical breakdown and road damage to tires covered through OTC?

NO

Personal Auto Policy (PAP) Insuring Agreement Is this coverage mandatory on the Personal Auto Policy.

NO

Can insurers or insurance producers offer insurance products through a credit card facility?

No they can not

An insurer or insurance producer must provide a "_______________" to all applicants or insured parties involved with the insurance transactions during the time of application.

Notice of Insurance Information Practices

If the insured (you) and insurance company to which the UM/UIM applies do not agree on the amount of the claim or if Part C applies, the insured (you) may make a written demand for arbitration. Arbitration only applies to what part of the PAP?

Part C

The Personal Auto Policy (PAP) sold in North Carolina is a policy designed to provide no less than the minimum liability limits as required by the state of North Carolina on a "______" basis.

Per Occurrence

Motor Vehicle insurance placed through the Facility is classified as what type of risk?

Substandard Risk

A licensed insurance producer who is unable to comply with CE requirements due to military service or long-term medical disability may request a WAIVER for CE requirements. A long-term medical disability must be certified on an ANNUAL basis by an attending physician to the licensee. True Or False.

True

An "At-Fault Minor Accident" involving property damage ONLY receives no surcharge as long as no licensed operator in the household has any other chargeable accidents or convictions for moving traffic violations during the experience period. You may have heard of this being referred to as "accident forgiveness." True or False

True

CE is due by the LAST DAY of the MONTH OF THE LICENSEE' BIRTHDAY in each compliance period. True or False

True

If a person purchases Collision coverage, Other Than Collision (OTC) will automatically be included. True or False.

True

If the auto is used in another state, the PAP amends to the minimum requirements of that state, but not less than the amount carried under the policy. True or False.

True

No insurer may refuse to insure or refuse to continue to insure an individual, limit the amount, extent, or kind of coverage available to an individual, or charge an individual a different rate for the same coverage, SOLELY because of blindness or partial blindness or deafness or partial deafness. True or False.

True

No licensee may solicit a power-of-attorney from a consumer that authorizes the licensee to sign insurance-related forms. True or False

True

PAP PART D - COVERAGE FOR DAMAGE TO YOUR AUTO (AUTO PHYSICAL DAMAGE): This section of the Personal Auto Policy (PAP) is NOT mandatory coverage. However, most lending institutions will require this coverage as long as the auto is being financed or leased. True or False.

True

Part A Liability Coverage follows the auto, not the driver. True or False.

True

Part A is third party liability Coverage. True or False.

True

Part D covers loss by FIRE OR LIGHTNING to clothes or other personal effects which are owned by an insured or any family member and are in a covered vehicle. True or False.

True

Personal Auto Policy (PAP) Collision Coverage: Collision provides coverage, as shown on the Declaration page, if the insured vehicle (your covered auto or non-owned auto including equipment) makes "DIRECT AND ACCIDENTALmpact with another vehicle or object. It also covers "upset" (rolling the car over). True or False.

True

Personal Auto Policy (PAP) Part B Our Right to Recover: The insurer reserves the right of subrogation on all claims. True or False.

True

The NCIUA will have the power on behalf of its members: (1) To cause to be issued policies of insurance to applicants. (2) To assume reinsurance from its members. (3) To cede reinsurance to its members and to purchase reinsurance in behalf of its members. True or False.

True

The North Carolina Motor Vehicle Reinsurance Facility (AKA, "The Facility") was created to provide auto insurance for individuals who would not be able to obtain coverage through the standard market. This is referred to as an "involuntary market" since insurers would ordinarily reject the applicant due to the applicants driving record. True or False

True

The PAP will also have coverage for "Uninsured and Underinsured Motorists" to protect persons from drivers who carry insufficient liability limits or if they have no auto insurance. True or False.

True

Your insurer will pay COMPENSATORY damages which you are legally entitled to recover from the owner or operator of an uninsured or underinsured motor vehicle because of bodily injury sustained by you and caused by an accident with an uninsured motorist. True or False.

True

Are supplementary Payments (which help with legal defense cost) part of coverage A?

Yes

PERSONAL AUTO POLICY (PAP) PART C UNINSURED/UNDERINSURED MOTORISTS (UM/UIM): This coverage part is sometimes referred to as "Combined Uninsured and Underinsured Motorist". Is this coverage MANDATORY in North Carolina?

Yes

What is Other than collision (OTC) coverage? and what does the Coverage include?

coverage protects against almost all accidental damage. Other than Collision (OTC) coverage includes losses due to fire, theft or larceny, explosion, earthquake, windstorm, missiles or falling objects, hail, water or flood, vandalism or malicious mischief, riot or civil commotion, glass breakage and contact with birds or animals (wild or domestic).

What did the Federal Privacy Act establish?

established the requirement that personal information collected by the insurance industry could not be given to any other party without the consent of the affected party.

What did the Federal Fair Credit Reporting Act of 1971 Establish?

established the right of a consumer to know what information has been collected on him or her.

Every Insurance Broker who solicits an application for insurance of any kind in any controversy between the insured or his beneficiary and the insurer issuing any policy upon such application is regarded as representing whom?

the insured or his beneficiary and not the insurer.

Every Insurance producer who solicits or negotiates an application for insurance of any kind in any controversy between the insured or his beneficiary and the insurer is regarded as representing whom?

the insurer and not the insured or his beneficiary.

Who is the insured under part C?

the named insured or any family member or any other person occupying the covered auto, or any other auto operated by the insured. Also, the named insured or any family member struck by an uninsured vehicle as a pedestrian is covered under Part C.

Any judgment for damages arising out of a suit is not binding on the insurer unless the insurer has been given a copy of what?

the summons, complaint or other process against the uninsured motorist

The commissioner is empowered to investigate what?

to investigate and conduct hearings on any insurance matter in the state including conducting an oral examination and investigation of persons suspected to be involved in unfair competition or deceptive practices.